Heaton Corp. sells on terms that allow customers 45 days to pay for merchandise. Its sales last year were dollar 425,000, and its year-end receivables were dollar 60,000. If its DSO is less than the 45-day credit period, then customers are paying on time. Otherwise, they are paying late. By how much are customers paying early or late?
Heaton Corp. sells on terms that allow customers 45 days to pay for merchandise. Its sales last year were dollar 425,000, and its year-end receivables were dollar 60,000. If its DSO is less than the 45-day credit period, then customers are paying on time. Otherwise, they are paying late. By how much are customers paying early or late?
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Transcribed Image Text:Heaton Corp. sells on terms that allow customers 45 days to
pay for merchandise. Its sales last year were dollar 425,000,
and its year-end receivables were dollar 60,000. If its DSO is
less than the 45-day credit period, then customers are paying
on time. Otherwise, they are paying late.
By how much are customers paying early or late?
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